Cross the barrier. Talk to Daveela. As in every other village, visit the shops and regenerate your strengths. While you're at the inn, search through the lockers in guest rooms: 100 Gold, Iridescent Cyclone, Iridescent Wind, Thorn Branch. Also, check out the area behind the item shop for 1xMedals, 7xMedals, Flawless Amethyst. When you're ready, talk to Daveela. After a scene go to Elder's House that's on higher ground, a little bit away from the central part of the village. Talk to the Elder. Search his house for some items: Flawless Amethyst, Grand Shadow Crystal. Get back to the main square and talk to the girl once more.
When the night falls, once again head to the Elder's house. Enter the room at the first floor and touch the vase. Activate the machinery to open the secret passage downstairs. Go there and head for the glowing tower. After a scene go down the ladder.
Pachess Town - Underground
Go along the corridor. In lower-left corner of the big room there's a chest with 5xMedals. Cross the stairs for Ancient Feather. In the upper part of the room there's a spell Lv5 Flarus. Step on the conveyor belts twice to get to a red switch in the wall.
Now go west. Take Grand Shadow Crystal from a chest and step on another conveyor belt. Defeat the skeletons and enter the big room to face a boss.
Boss -Scything Skull Spiker
This battle can be tough, mostly because of the Image of Death ability that the enemy uses. It can instantly kill any character, but is executed no faster than each 4 rounds. You have to hurry. Focus your attacks on the helmet - you won't do much damage, but it's the only way to beat this guy. Use physical and magical attacks. When he summons skeletons, use Shina.
You'll get a Green Device for this battle. When you're asked whether you want to get back to the surface, choose "No" and explore the room in front of you. There's Mirror Ring - take it and then go back to the village (you have to press a button to change the conveyor belt's direction along the way). Use Green Device on a broken mechanism. Well, that's it for Pachess Town.
Go a bit south from the village, towards the big, stone pillar. It'll get knocked over by orbital lasers. You'll also get the device that lets you deactivate all the green barriers in the game.
Go to the other side and look around the map. Now is the time for you to prepare to second act finale. How to do it? Well, by fighting, of course! Try to walk around the ice fields and train on all the enemies you can see. You'll notice a mobile droid factory moving around the central part of the plains - you can check it out, but it's not really worth it for now (it's a sub-quest on Disc 3 that requires the ability to lift white force fields). Focus on eliminating minor monsters here and there. A good spot to engage your Barrier abilities is to the north. That area is controlled by fearsome penguins that tend to respawn very quickly. Don't approach the huge crater until you feel ready. Your characters should be on about 33 experience level and should have very strong shadows (I'd recommend two full skill sets for each of them). If you develop them to that extent, that should be a walk in the park.
Approach the crater and eliminate the guards. Enter the hole for some cut-scenes.